Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin-236084.2%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin-235580.6%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
F
Years to Pay Off Debt-0.0 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital-$0M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
D
Price-to-BookN/A (neg. equity)
Negative book value means total liabilities exceed total assets on the balance sheet. Two very different causes: (1) Heavy buybacks and dividends in highly profitable companies (Apple, McDonald's, Domino's) — equity deliberately reduced, not a warning sign. (2) Accumulated losses in unprofitable companies (Peloton, WeWork) — a genuine red flag. Check profitability and free cash flow to distinguish between the two. P/B cannot be scored meaningfully here.
Cash Flow
F
Free Cash Flow-$4M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Negative book value means total liabilities exceed total assets on the balance sheet. Two very different causes: (1) Heavy buybacks and dividends in highly profitable companies (Apple, McDonald's, Domino's) — equity deliberately reduced, not a warning sign. (2) Accumulated losses in unprofitable companies (Peloton, WeWork) — a genuine red flag. Check profitability and free cash flow to distinguish between the two. P/B cannot be scored meaningfully here.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Healthier Choices Management Corp. engages in the vaporizer business in the United States. The company manages and monetizes its intellectual property portfolio comprising Q-Cup and Imitine through royalty and licensing agreements. It also markets its patented Q-Unit and Q-Cup technology, a small quartz cup that users can fill with cannabis or cannabidiol (CBD) concentrate for external heating without direct contact with the concentrate, to consumers in the vaping market. The company was founded in 2008 and is headquartered in Hollywood, Florida.
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
2021
Gross Profit %
-937.9%▲
-13,234.5%▼
-27.6%▼
34.9%•
N/A
Operating Margin %
-236,084.2%▲
-1,697,351.3%▼
-1,207,716.2%▼
-29.6%•
N/A
Net Income %
-235,580.6%▲
-2,373,421.8%▲
-2,995,604.5%▼
-24.7%•
N/A
Diluted EPS
0.00→
0.00→
0.00▲
-0.00•
N/A
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$1M
$2M
$31M
$55M
N/A
Total Debt
$0M▼
$0M▼
$1M▼
$14M•
N/A
Working Capital
-$0M▲
-$1M▼
-$1M▼
$20M•
N/A
Years to Pay Debt
-0.00
-0.04
-0.03
-1.89
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
-$4M▼
-$4M▲
-$5M▼
-$4M•
N/A
Owner Earnings
N/A
-$12M
-$14M
-$4M
N/A
CapEx % of Net Income
N/A
N/A
N/A
N/A
N/A
Income Statement
2025
2024
2023
2022
2021
Normalized EBITDA
-6,982
-8,343
-3,361
-6,747
Total Unusual Items
-1
-8
320
768
Total Unusual Items Excluding Goodwill
-1
-8
320
768
Net Income From Continuing Operation Net Minority Interest
-7,018
-8,115
-8,550
-7,218
Reconciled Depreciation
51
159
4,083
2,226
Reconciled Cost Of Revenue
31
67
1
19,043
EBITDA
-6,982
-8,344
-3,369
-6,427
EBIT
-7,033
-8,504
-7,452
-8,653
Net Interest Income
35
126
412
203
Interest Expense
65
Interest Income
212
203
Normalized Income
-7,018
-8,114
-8,542
-7,537
Net Income From Continuing And Discontinued Operation
-7,018
-11,891
-18,483
-7,218
Total Expenses
7,036
8,504
7,452
37,920
Total Operating Income As Reported
-7,033
-8,504
-7,452
-8,653
Diluted Average Shares
481,266,632
479,695,594
429,919,441
339,741,632
Basic Average Shares
481,266,632
479,695,594
429,919,441
339,741,632
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
-7,018
-11,891
-18,635
-7,218
Net Income Common Stockholders
-7,018
-11,891
-18,635
-7,218
Otherunder Preferred Stock Dividend
0
152
0
Net Income
-7,018
-11,891
-18,483
-7,218
Net Income Including Noncontrolling Interests
-7,018
-11,891
-18,483
-7,218
Net Income Discontinuous Operations
0
-3,776
-9,933
Net Income Continuous Operations
-7,018
-8,115
-8,550
-7,218
Pretax Income
-7,018
-8,115
-8,550
-7,218
Other Income Expense
-20
262
-1,510
1,233
Other Non Operating Income Expenses
-20
264
-1,502
913
Special Income Charges
-5,329
333
768
Other Special Charges
-768
Impairment Of Capital Assets
6,104
0
0
Restructuring And Mergern Acquisition
-775
-333
Gain On Sale Of Security
-1
-8
-13
0
Net Non Operating Interest Income Expense
35
126
412
203
Total Other Finance Cost
-35
-126
-412
-203
Interest Expense Non Operating
65
Interest Income Non Operating
212
203
Operating Income
-7,033
-8,504
-7,452
-8,653
Operating Expense
7,005
8,437
7,451
18,877
Other Operating Expenses
7,005
8,437
7,451
18,877
Selling General And Administration
32,220
18,877
10,033
Gross Profit
-28
-66
0
10,224
Cost Of Revenue
31
67
1
19,043
Total Revenue
3
1
1
29,267
Operating Revenue
3
1
1
29,267
Balance Sheet
2025
2024
2023
2022
2021
Ordinary Shares Number
525,156,419
481,266,632
478,266,632
339,741,632
Share Issued
525,156,419
481,266,632
478,266,632
339,741,632
Total Debt
1
458
552
13,638
Tangible Book Value
-1,353
-1,719
6,560
8,654
Invested Capital
-1,233
-1,108
7,211
22,774
Working Capital
-251
-720
-506
20,401
Net Tangible Assets
-1,353
-1,719
6,560
9,454
Capital Lease Obligations
1
4
98
10,270
Common Stock Equity
-1,233
-1,561
6,758
19,406
Preferred Stock Equity
800
800
Total Capitalization
-1,233
-1,561
6,758
22,584
Total Equity Gross Minority Interest
-1,233
-1,561
6,758
20,206
Stockholders Equity
-1,233
-1,561
6,758
20,206
Retained Earnings
-82,054
-75,036
-62,097
-43,614
Additional Paid In Capital
28,304
25,348
21,028
29,046
Capital Stock
52,516
48,127
47,827
34,774
Common Stock
52,516
48,127
47,827
33,974
Preferred Stock
0
0
800
800
Total Liabilities Net Minority Interest
2,701
3,782
24,211
35,049
Total Non Current Liabilities Net Minority Interest
1,111
1,112
11,981
25,142
Liabilities Heldfor Sale Non Current
0
7,112
Preferred Securities Outside Stock Equity
1,111
1,111
1,111
14,722
Dueto Related Parties Non Current
0
3,753
Long Term Debt And Capital Lease Obligation
0
1
4
10,420
Long Term Capital Lease Obligation
0
1
4
8,042
Long Term Debt
2,404
2,378
1
Current Liabilities
1,590
2,669
12,231
9,907
Other Current Liabilities
8,579
775
Current Deferred Liabilities
208
199
23
Current Deferred Revenue
208
199
23
Current Debt And Capital Lease Obligation
1
456
547
3,219
Current Capital Lease Obligation
1
3
94
2,229
Current Debt
453
453
990
421
Other Current Borrowings
703
537
421
Line Of Credit
0
453
453
453
Payables And Accrued Expenses
1,589
2,213
3,104
5,715
Payables
1,589
2,213
3,104
Dueto Related Parties Current
0
190
0
Accounts Payable
1,589
2,023
3,104
Total Assets
1,468
2,220
30,970
55,255
Total Non Current Assets
128
272
19,244
24,947
Other Non Current Assets
28
18,889
476
85
Goodwill And Other Intangible Assets
119
158
198
10,753
Other Intangible Assets
119
158
198
5,006
Goodwill
0
5,747
916
Net PPE
9
85
157
13,718
Accumulated Depreciation
-85
-114
-89
-993
Gross PPE
94
199
246
14,711
Leases
1,925
1,911
137
Other Properties
9
57
106
11,505
Machinery Furniture Equipment
84
141
139
720
Buildings And Improvements
575
575
0
Current Assets
1,340
1,949
11,725
30,308
Other Current Assets
9
1,234
Assets Held For Sale Current
0
5,945
Restricted Cash
100
553
553
1,778
Prepaid Assets
63
162
1,493
322
Inventory
36
40
67
3,817
Finished Goods
4,229
3,817
1,521
Receivables
0
0
128
245
Notes Receivable
0
189
248
Accounts Receivable
0
0
128
56
Cash Cash Equivalents And Short Term Investments
1,140
1,194
3,659
22,912
Other Short Term Investments
10
23
Cash And Cash Equivalents
1,140
1,194
3,659
22,912
Cash Financial
1,140
1,194
3,659
22,912
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
-3,881
-3,703
-4,936
-4,360
Repurchase Of Capital Stock
0
-12,156
0
Repayment Of Debt
-453
0
-558
-89
Issuance Of Debt
7,500
0
35
418
Issuance Of Capital Stock
0
12,840
29,344
Capital Expenditure
-47
-197
-493
-69
Interest Paid Supplemental Data
1
16
205
36
End Cash Position
1,240
1,747
5,634
24,690
Beginning Cash Position
1,747
5,634
24,690
26,496
Changes In Cash
-506
-3,888
-19,056
-1,806
Financing Cash Flow
3,375
4,687
-13,548
12,786
Cash From Discontinued Financing Activities
0
6,525
Cash Flow From Continuing Financing Activities
3,375
-1,838
-13,548
12,786
Net Other Financing Charges
3,828
-1,838
-834
Proceeds From Stock Option Exercised
0
228
Net Preferred Stock Issuance
0
-12,156
12,840
5,000
Preferred Stock Payments
0
-12,156
0
Preferred Stock Issuance
0
12,840
5,000
Net Common Stock Issuance
0
24,344
Common Stock Issuance
0
24,344
Net Issuance Payments Of Debt
-453
0
-558
-54
Net Short Term Debt Issuance
-453
0
0
35
Short Term Debt Payments
-453
0
0
-2,000
Short Term Debt Issuance
0
35
418
Net Long Term Debt Issuance
7,151
-558
-89
-803
Long Term Debt Payments
-349
-558
-89
-803
Long Term Debt Issuance
7,500
0
0
Investing Cash Flow
0
-4,919
-769
-10,726
Cash From Discontinued Investing Activities
0
-4,872
Cash Flow From Continuing Investing Activities
0
-47
-769
-10,726
Net Other Investing Changes
178
59
57
Net Business Purchase And Sale
-5,475
-750
-10,292
-75
Purchase Of Business
-5,475
-750
-10,292
-75
Net Intangibles Purchase And Sale
0
-12
-12
-12
Purchase Of Intangibles
0
-12
-12
-12
Net PPE Purchase And Sale
0
-47
-184
-481
Sale Of PPE
749
0
Purchase Of PPE
0
-47
-184
-481
Operating Cash Flow
-3,881
-3,656
-4,739
-3,866
Cash From Discontinued Operating Activities
0
-3,076
Cash Flow From Continuing Operating Activities
-3,881
-580
-4,739
-3,866
Change In Working Capital
-350
2,822
-1,880
-188
Change In Other Working Capital
-157
-22
-318
2
Change In Other Current Liabilities
-3
-94
-2,458
-1,077
Change In Other Current Assets
70
133
923
-1,615
Change In Payables And Accrued Expense
-434
-1,082
1,974
4,072
Change In Accrued Expense
0
61
Change In Interest Payable
0
61
Change In Payable
-83
1,974
4,072
557
Change In Account Payable
-83
1,974
4,072
557
Change In Prepaid Assets
99
1,332
-177
134
Change In Inventory
-13
93
-2,033
-1,357
Change In Receivables
-68
2,440
-88
-27
Changes In Account Receivables
0
0
-88
-27
Other Non Cash Items
72
-502
-333
61
Stock Based Compensation
3,396
4,620
3,430
72
Provisionand Write Offof Assets
0
15
0
Asset Impairment Charge
17
-67
8,576
1,561
Depreciation Amortization Depletion
51
159
4,083
2,226
Depreciation And Amortization
51
159
4,083
2,226
Depreciation
51
159
4,083
2,226
Operating Gains Losses
23
1
21
13
Gain Loss On Investment Securities
1
8
13
0
Gain Loss On Sale Of PPE
-205
0
Net Income From Continuing Operations
-7,018
-8,115
-18,483
-7,218
0/6
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A (negative EPS)
Margin of Safety
—
Market Cap / Net Assets
⚠ Negative Net Assets
Net Assets: -$1M
⚠ Negative Net Assets — total liabilities exceed total assets on paper. This is common in companies that aggressively return capital via buybacks and dividends (Apple, McDonald's, Domino's). It does not indicate insolvency if the business generates strong, consistent free cash flow. Focus on FCF and earnings power rather than balance sheet book value for these companies.
Warren's Owner Earnings
N/A
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
0/6 — Speculative Investor
❌
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$0M
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
0.84x
vs Current Ratio > 2.0x
❌
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
4 loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
❌
Moderate P/E Ratio
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
infx
vs P/E ≤ 15.0x
❌
Moderate Price-to-Book
This company has negative book equity — meaning accumulated buybacks and dividends exceed retained earnings on paper. This is common in highly profitable, capital-return-focused businesses (e.g. Domino's, McDonald's, Home Depot) and does not indicate financial distress. P/B is not a meaningful valuation metric for these companies.
N/A (negative book value)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
❌ Adequate Size — $0Mvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 0.84xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
❌ Earnings Stability — 4 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
❌ Moderate P/E Ratio — infxvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
This company has negative book equity — meaning accumulated buybacks and dividends exceed retained earnings on paper. This is common in highly profitable, capital-return-focused businesses (e.g. Domino's, McDonald's, Home Depot) and does not indicate financial distress. P/B is not a meaningful valuation metric for these companies.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
These metrics estimate what Healthier Choices Management Corp. is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
$-0.00
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$-0.00
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
N/A
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
N/A
N/A
N/A
N/A
N/A
Repurchase of Capital Stock
N/A
$0M
-$12M
$0M
N/A
Free Cash Flow
-$4M▼
-$4M▲
-$5M▼
-$4M•
N/A•
Warren's Owner Earnings
N/A
-$12M
-$14M
-$4M
N/A
Peers & Industry
No auto-detected peers for Tobacco. You can manually compare HCMC against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
10.24%
High — management has strong skin in the game
Return on Assets (ROA)
-478.1%
Poor — assets are not generating adequate returns
Debt Trend YoY
-99.7% YoY
Debt is declining — management is deleveraging
Leadership Team
Jeffrey Elliot Holman
Chairman & CEO
Age 58
Pay: $396,017
Christopher Santi
President & COO
Age 54
Pay: $188,615
John Ollet CPA
Chief Financial Officer
Age 62
Pay: $146,751
Isaac Galazan
Co-Founder
Elaine Riano
Executive Vice-President of Health & Wellness
Top Institutional Holders
Institution
% Owned
Shares
Wealth Group Ltd
N/A
170,000
MassMutual Private Wealth & Trust, FSB
N/A
12,000
Chicago Trust Co Na
N/A
1,010,000
Proathlete Wealth Management LLC
N/A
50,000
NBT Bank, N.A.
N/A
500,000
⚠️Very high beta — extreme price volatility
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
12.38
High volatility — moves more than the market
Short Interest
0.7% of float
Low short interest — market is not heavily bearish
Current Ratio
0.61x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $0.00Current: $0.00High: $0.00
Currently at 100% of 52-week range
Healthier Choices Management Corp. (HCMC) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A (negative EPS). Gross profit margin: -937.9%. Operating margin: -236,084.2%. Net margin: -235,580.6%. Market cap: $53M. Sector: Consumer Defensive. Industry: Tobacco. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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